Canada’s construction industry poised for growth amid policy shifts and cost pressures
Latest economic data highlights positive growth indicators for Canada’s construction industry, outpacing other Canadian industries, despite an ongoing rise in construction costs and supply chain disruptions.
OTTAWA, January 29, 2026
Today, the Canadian Construction Association (CCA) released the winter edition of its Construction Quarterly Economic Insights (CQEI) report, showing a growth in construction GDP output of 1.3 per cent in Q3 2025, successfully outpacing the all-industry average and setting the stage for continued advancement.
“The opportunities ahead for our industry are significant, but so are the risks,” said Rodrigue Gilbert, CCA’s President. “Investments from the federal government will drive growth, but rising costs and workforce constraints will continue to limit the industry’s ability to unlock its full potential and deliver on Canada’s ambitious construction agenda.”
Facing the end of 2025, the Building Construction Price Index (BCPI) increased 4.2 per cent year-over-year in Q3, with increases particularly driven by metal fabrications, structural steel, and plumbing. Canadian jurisdictions most affected by cost increases were noted as London, (ON) and Quebec City (QC). Additionally, the cost of factory construction increased by 5.7 per cent, while the cost of office building increased by 3.2 per cent.
The 2025 federal budget, published in November 2025, presented $89.7 billion in net new measures over the next five years, with $32.5 billion being classified as capital investments. In total, CCA noted approximately $32 billion in new construction-related spending earmarked over the next five years.
“2025 was a very strong year for our industry and we’re looking forward to building on that progress to build the Canada that Canadians deserve,” said Gilbert. “Together, we’ll keep building Canada.”
Get your copy of the economic report here: Economic data signals growth with Budget 2025 pointing to further construction investment ahead – Canadian Construction Association
The next Construction Quarterly Economic Insights report will be published in April 2026.
For more information:
Anthony Valenti
Manager, Media Relations
Canadian Construction Association
613-608-2716
[email protected]
About CCA:
CCA represents more than 18,000 member firms drawn from 57 local and provincial integrated partner associations across Canada. CCA gives voice to the public policy, legal and standards development goals of contractors, suppliers and allied business professionals working in, or with, Canada’s institutional, commercial, industrial, civil and multi-residential construction industry.
The construction sector is one of Canada’s largest employers and a major contributor to the country’s economic success. The industry, 99.9 per cent of which is made up of small and medium enterprises, employs more than 1.6 million Canadians and contributes 7.3 per cent of Canada’s Gross Domestic Product.